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Iran war stalls Eurasian trade corridors, threatening Kazakhstan's port access

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Iran war stalls Eurasian trade corridors, threatening Kazakhstan's port access

The Iran war has disrupted key rail links across Eurasia, including a bridge on one of only two railroads from Iran into Turkmenistan. The damage threatens landlocked Kazakhstan's access to Iranian ports under a 27-year terminal agreement signed June 28. No ceasefire negotiations are currently underway between Iran and the United States.

Key Facts

  • U.S. forces launched missile strikes on multiple targets in Iran on July 8 after the previous ceasefire collapsed.
  • A cruise missile struck the Agh Tekeh Khan railway bridge near Aqqala, one of only two railroads from Iran into Turkmenistan.
  • Iran and Kazakhstan signed a 27-year agreement on June 28 for Kazakhstan to build and operate a terminal at Shahid Rajaee Port near Bandar Abbas.
  • The damaged bridge connects the Iran-Turkmenistan-Kazakhstan Railway and the eastern route of the International North-South Transport Corridor.

Strikes on Iranian Rail Infrastructure

On July 8, after the previous ceasefire fell apart, U.S. forces launched missile strikes against multiple targets in Iran. Financial Times reported that cruise missiles struck and visibly damaged the Agh Tekeh Khan railway bridge near the city of Aqqala in northern Iran. The bridge is one of only two railroads that lead out of Iran into Turkmenistan. It connects the Iran-Turkmenistan-Kazakhstan Railway and the eastern route of the International North-South Transport Corridor.

Regional Connectivity Agreements

India, Iran, and Russia agreed to construct the International North-South Transport Corridor in September 2000, with Kazakhstan and Tajikistan joining before the end of the decade. The European Union-financed Transport Corridor Europe-Caucasus-Asia program was formed in Belgium in 1993, and Iran joined as a member in June 2009. Iran, Oman, Qatar, Turkmenistan, and Uzbekistan signed the Ashgabat Agreement in 2011 to simplify transportation and trade; Qatar withdrew in 2013, while Kazakhstan, Pakistan, and India signed on in recent years.

Kazakhstan's Port Terminal Deal

On June 28, Iran and Kazakhstan signed an agreement allowing Kazakhstan to build and operate a terminal at Shahid Rajaee Port near Bandar Abbas. The 27-year agreement allocates 15 hectares at the Iranian port, with two years for construction and 25 years for operation. Kazakhstan will provide privately sourced investment funds for the terminal's construction. The two railway corridors passing through Kazakhstan to the coast of Iran mean Kazakhstan will see benefits from the project relatively quickly.

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Iran war stalls Eurasian trade corridors, threatening Kazakhstan's port access